Eviction is Avoidable
Eviction Diversion Program
The Eviction Diversion Program (EDP) is meant to keep Michigan residents in their homes even if they fell behind on their rent during COVID-19.
The program uses a special court process to get fast rental assistance for tenants and allows landlords to get quick and substantial payments.
Reduce homelessness – Reduce evictions – Improve housing stability
How Do I Get Help?
The Virtual Housing Hour
Join Us every Friday Starting July 17th at 10AM as Holy Cross Services Presents The Virtual Housing Hour, where we talk about solutions and and field questions on way to prevent evictions and support resources that you can reach out to for help.
How Does It Work?
The Eviction Diversion Program (EDP) is designed to keep Michigan residents who fell behind on their rent during COVID-19 in their homes.
The program utilizes a special court process to get fast rental assistance for renters who need it.
$60 million in Coronavirus Relief Funds (CRF) have been allocated.
The Michigan State Housing Development Authority is dispersing the funds through grants to local Housing Assessment and Resource Agencies (HARA), like Holy Cross Services.
The funds are divided up as follows:
• $50 million for rental assistance
• $4 million for case management for Housing Assessment and Resource Agencies
• $4 million for legal services
• $2 million for administrative costs
Participating in the program means a landlord can get up to 90% of a tenant’s back rent, paid in a lump sum. Landlords must forgive late fees and up to 10% of the back rent. The conditional dismissal will document the payment terms/dates by all parties.
Rental assistance payments will be structured based on the tenant’s income.
• Those under 50% area median income (AMI) can get 90% of their owed rent paid, up to $3,500 and one-month’s rent (up to $1,200) going forward.
• Those between 50-80% AMI can get 75% of their owed rent paid, up to $3,000.
• Those between 80-100% AMI can get 65% of their owed rent, up to $3,000.
• Those above 100% AMI are not eligible for financial assistance.
Half of the rental assistance will be reserved for household at 50% AMI and below.
Anything not covered in the above payments, or amounts that the landlord refuses to forgive, are considered the tenant’s responsibility and must be paid to the landlord prior to the CRF (Coronavirus Relief Fund) is granted, or in a payment plan.
Tenants whose back rent is not completely covered by the Eviction Diversion Program will be entered into manageable payment plans.
Additional Requirements Include:
• Tenants must show proof of identification and provide 30 days or four weeks of paystubs to document their income.
• Pandemic Unemployment Assistance will be counted for income determination purposes.
• Tenants will only be eligible to participate in the program one time.
• Tenants below 50% AMI will be offered case management services for up to three months to connect them with other beneficial programs and services.
Coronavirus Relief Fund (CRF) rental assistance payments will cover up to 90% of the past-due rent for qualifying individuals.
Landlords are required to forgive 10% of the past-due rent and remove any late fees or penalties from the amount due.
CRF funds can only be used on rent due beginning March 1, 2020.
Initial funding is expected to be allocated quickly for the program. The expenditure deadline for the Coronavirus Relief Fund (CRF) funds is December 30, 2020.
Michigan State Housing Development Authority (MSHDA) is administering the program and has convened an EDP state leadership team comprised of staff from MSHDA, MDHHS, SCAO, Michigan Poverty Law Program, Michigan State Bar Foundation, and the Governor’s Office. Their purpose is to guide the program’s execution, monitor program outcomes, and distribute information within their respective agencies/areas of influence to aid in program effectiveness.